Farfetch - statistics & facts
With operations in over 190 countries and territories, Farfetch offers consumers the ability to purchase luxury fashion in an attractive online marketplace format. The brand claims to deliver a unique shopping experience for its consumers due to its extensive, curated selection of high-end fashion goods. But after almost two decades since its founding, Farfetch still deals with its fair share of complications in its quest to become the backbone of luxury fashion e-commerce.
Coupang, a Fortune 200 company and global e-commerce leader that is often called the “Amazon of South Korea” offers a variety of services that range from same-day delivery, online grocery delivery and food delivery, video streaming, and digital payments.
This has proven to be a difficult challenge for Farfetch. Following the acquisition, the company’s CEO and founder, José Neves — along with other department heads — still stepped down in February 2024 in order to reduce redundant roles and secure the future of the business. This decision paired with the new ability to leverage Coupang’s operational and logistical success, may have done just that: increased the longevity of Farfetch by allowing the brand to continue delivering exceptional luxury marketplace services for its partners and customers alike.
Acquisition blues
Months after Farfetch cancelled its third quarter earnings call in 2023 and rumors began to swirl about the company going private, a press release in December that year revealed that the New York Stock Exchange (NYSE) would be delisting the company. While the UK-based luxury marketplace generated an annual revenue of over 2.32 billion U.S. dollars in 2022 and has a total of 4.1 million active consumers as of the second quarter of 2023, the company was ultimately only able to avoid bankruptcy by way of acquisition. As of January 2024, the South Korean e-commerce company Coupang has officially acquired Farfetch, having fished out a total of 500 million U.S. dollars to do so.Coupang, a Fortune 200 company and global e-commerce leader that is often called the “Amazon of South Korea” offers a variety of services that range from same-day delivery, online grocery delivery and food delivery, video streaming, and digital payments.
Online luxury’s longevity
Globally, the online luxury goods market was estimated to have reached 363 billion euros in value in 2023. Because luxury goods, or goods that tend to be considered both among those with the highest prices and those with the most superb quality in the market, are often sought after by the consumer demographics that can regularly afford them, luxury retailers must take the appropriate steps to carefully foster their relationships with these consumers in order to ensure brand loyalty.This has proven to be a difficult challenge for Farfetch. Following the acquisition, the company’s CEO and founder, José Neves — along with other department heads — still stepped down in February 2024 in order to reduce redundant roles and secure the future of the business. This decision paired with the new ability to leverage Coupang’s operational and logistical success, may have done just that: increased the longevity of Farfetch by allowing the brand to continue delivering exceptional luxury marketplace services for its partners and customers alike.
